Companies should be talking to a much wider range of interested parties when they audit their supply chains, says Sarah Selby
Social auditing may have a lot to learn from the stakeholder dialogue
approach. The increasing pressure on companies to take responsibility
for the social performance of their suppliers has led to the widespread
application of tick-box audit approaches traditionally used by
technical auditors. Yet such approaches have rightly been criticized
for their tight focus on a checklist of issues, the narrow range of
stakeholders they consider and the limited scope they offer to
understand and improve workplace conditions. Similarly, traditional
audits often fail to identify areas where suppliers are not complying
with the social and health and safety standards laid down, and
generally do not help the supplier to resolve such issues.
So are there alternatives? The participatory approach recognizes that
‘bottom-up’ supply chain measures encourage greater involvement from
those affected, allowing companies to make more use of the
perspectives, knowledge and skills of their suppliers. Participatory
social assessments aim to include the voices of employees and local
community members which are often excluded or marginalized in shorter,
more traditional site assessments. They use a range of techniques to
identify priority issues, identify root causes and solutions, and to
reach literate or non-literate groups of different ages, genders,
ethnicity and backgrounds. They also aim to empower stakeholders and to
promote their interest and involvement in any changes needed.
Unlike traditional audits, a participatory assessment need not conclude
with a report summarizing non-compliance issues. Indeed, its essence is
to ensure that feedback on all findings is given to all participants,
kick-starting the process of developing solutions to often complex
issues.
There is, however, a financial cost. More time
on site is needed to build relationships with employees and to secure a
commitment to find solutions that work, and new skills have to be
developed.
Given the large number of suppliers used by
major companies, compromises may have to be made. At the outset, it may
be necessary to carry out a rapid social assessment, based on short
visits, to identify high-risk and high-volume suppliers who can be
targeted first.
The participatory approach, then, is not
an easy route, for it needs time, money and commitment, which is why it
has been applied only on a limited basis up to now. But it may offer a
better way forward for social auditing than the traditional checklist
approach. Not only is it a more inclusive way of doing things, it has
the potential to lead to greater productivity and loyalty from
suppliers and their employees, and to protect brand and reputation by
promoting improved working conditions. It therefore has the potential
to increase efficiency and profits.
Sarah Selby is a consultant with ERM.
